Equity Group Holdings PLC, one of East Africa’s largest financial institutions, has reported a solid financial performance for the nine months ended September 30, 2025, showing resilience in a year marked by economic uncertainty and inflationary pressures.
The Group’s profit after tax rose sharply to KSh 54.1 billion, up from KSh 40.9 billion during the same period in 2024 — a growth of about 32% year-on-year. This strong performance cements Equity’s position as a regional banking powerhouse and a safe bet for long-term investors.
Strong Earnings Driven by Interest and Non-Interest Income
Equity’s total operating income reached KSh 156.3 billion, up from KSh 141.7 billion in September 2024. The interest income — mainly from loans and government securities — climbed to KSh 129.5 billion, reflecting both higher lending volumes and better yield management.
Equity’s diversified business model also paid off. Non-interest income (from fees, commissions, forex trading, and other services) increased to KSh 62.7 billion, contributing a healthy 40% of total revenue. This diversification shields the bank from interest rate shocks and demonstrates its focus on value-added services such as digital banking, trade finance, and cross-border transactions.
Tight Cost Control and Rising Efficiency
Despite expanding its operations, the Group kept a close eye on expenses. Operating expenses rose modestly to KSh 90.7 billion, up from KSh 90.7 billion last year — almost flat in real terms, given inflation trends.
Staff costs and loan provisions remain the largest expenses, but the cost-to-income ratio improved, signaling better efficiency through digitization and leaner branch operations. Equity’s continued investment in technology and data-driven customer management is clearly paying off.
Strong Balance Sheet and Liquidity
Equity Group’s total assets grew to KSh 1.82 trillion, up from KSh 1.70 trillion a year earlier — a sign of expanding customer deposits and prudent asset management. Customer deposits increased to KSh 1.35 trillion, showing sustained public confidence in the bank’s stability. This growth supports continued lending to individuals, small businesses, and corporates across the region.
Liquidity remained exceptionally strong, with a liquidity ratio of 61%, far above the Central Bank of Kenya’s minimum requirement of 20%. This ensures the Group can comfortably meet short-term obligations even in tight market conditions.
Loan Quality and Risk Management
The Group’s non-performing loans (NPLs) stood at KSh 129.2 billion, compared to KSh 125.3 billion last year. Although slightly higher, Equity has significantly strengthened its loan loss provisions, now covering over 63% of bad loans. The result is a much safer balance sheet and improved credit discipline across its lending portfolio, especially as many regional economies continue to recover from post-pandemic shocks and currency pressures.
Capital Strength: Well Above Regulatory Requirements
Equity Group continues to be one of the most well-capitalized banks in the region.
The core capital ratio stood at 17.1%, and the total capital ratio at 19.4%, both comfortably above the regulatory minimums of 10.5% and 14.5%, respectively. This capital buffer gives the bank room to grow, expand regionally, and absorb potential economic shocks — a major reassurance to both investors and depositors.
What This Means for Investors
For investors, Equity’s results signal sustained profitability, sound management, and defensive strength in a volatile economic environment. The Group’s ability to combine high liquidity, strong capital adequacy, and steady income growth makes its stock an attractive long-term investment on the Nairobi Securities Exchange (NSE). With earnings per share (EPS) rising to KSh 13.81 from KSh 10.41 last year, shareholders can look forward to potentially higher dividends in 2025, supported by strong retained earnings and healthy cash flow.
The Bottom Line
Equity Group Holdings has once again demonstrated that its growth is built on resilience, innovation, and prudent risk management. As Kenya and the region continue navigating tough economic conditions, Equity remains a model of what steady leadership, diversified operations, and digital transformation can achieve. For the ordinary depositor, it remains a safe and dependable bank. For investors, it represents a strong and stable long-term value play in East Africa’s financial sector.
The Group’s profit after tax rose sharply to KSh 54.1 billion, up from KSh 40.9 billion during the same period in 2024 — a growth of about 32% year-on-year. This strong performance cements Equity’s position as a regional banking powerhouse and a safe bet for long-term investors.
Strong Earnings Driven by Interest and Non-Interest Income
Equity’s total operating income reached KSh 156.3 billion, up from KSh 141.7 billion in September 2024. The interest income — mainly from loans and government securities — climbed to KSh 129.5 billion, reflecting both higher lending volumes and better yield management.
Equity’s diversified business model also paid off. Non-interest income (from fees, commissions, forex trading, and other services) increased to KSh 62.7 billion, contributing a healthy 40% of total revenue. This diversification shields the bank from interest rate shocks and demonstrates its focus on value-added services such as digital banking, trade finance, and cross-border transactions.
Tight Cost Control and Rising Efficiency
Despite expanding its operations, the Group kept a close eye on expenses. Operating expenses rose modestly to KSh 90.7 billion, up from KSh 90.7 billion last year — almost flat in real terms, given inflation trends.
Staff costs and loan provisions remain the largest expenses, but the cost-to-income ratio improved, signaling better efficiency through digitization and leaner branch operations. Equity’s continued investment in technology and data-driven customer management is clearly paying off.
Strong Balance Sheet and Liquidity
Equity Group’s total assets grew to KSh 1.82 trillion, up from KSh 1.70 trillion a year earlier — a sign of expanding customer deposits and prudent asset management. Customer deposits increased to KSh 1.35 trillion, showing sustained public confidence in the bank’s stability. This growth supports continued lending to individuals, small businesses, and corporates across the region.
Liquidity remained exceptionally strong, with a liquidity ratio of 61%, far above the Central Bank of Kenya’s minimum requirement of 20%. This ensures the Group can comfortably meet short-term obligations even in tight market conditions.
Loan Quality and Risk Management
The Group’s non-performing loans (NPLs) stood at KSh 129.2 billion, compared to KSh 125.3 billion last year. Although slightly higher, Equity has significantly strengthened its loan loss provisions, now covering over 63% of bad loans. The result is a much safer balance sheet and improved credit discipline across its lending portfolio, especially as many regional economies continue to recover from post-pandemic shocks and currency pressures.
Capital Strength: Well Above Regulatory Requirements
Equity Group continues to be one of the most well-capitalized banks in the region.
The core capital ratio stood at 17.1%, and the total capital ratio at 19.4%, both comfortably above the regulatory minimums of 10.5% and 14.5%, respectively. This capital buffer gives the bank room to grow, expand regionally, and absorb potential economic shocks — a major reassurance to both investors and depositors.
What This Means for Investors
For investors, Equity’s results signal sustained profitability, sound management, and defensive strength in a volatile economic environment. The Group’s ability to combine high liquidity, strong capital adequacy, and steady income growth makes its stock an attractive long-term investment on the Nairobi Securities Exchange (NSE). With earnings per share (EPS) rising to KSh 13.81 from KSh 10.41 last year, shareholders can look forward to potentially higher dividends in 2025, supported by strong retained earnings and healthy cash flow.
The Bottom Line
Equity Group Holdings has once again demonstrated that its growth is built on resilience, innovation, and prudent risk management. As Kenya and the region continue navigating tough economic conditions, Equity remains a model of what steady leadership, diversified operations, and digital transformation can achieve. For the ordinary depositor, it remains a safe and dependable bank. For investors, it represents a strong and stable long-term value play in East Africa’s financial sector.
